MBO goal examples are usually set to establish the primary goals of employees, which are later rated through group or manager feedback to determine efficacy. Not only does it benefit the company, but it also allows corporate employees to put efforts in the right direction to facilitate their professional development. The ultimate result of an MBO manager is an increased consistency between actions and consequences, enhancing company productivity immensely.

Why Do Organizations Need MBO Compensation Management?

There are multiple reasons why organizations would choose to have an MBO manager.
MBO goal setting can help them –

• Link impacted sales data with specific salespeople
• Improve performance by refining data quality
• Avoid delay in final performance data availability
• Facilitate other non-sales activities, including training, coaching, etc.

Risk of Poor MBO Goal Setting 

When MBO goal examples are poor, it can cause several problems within the organization. Let’s take a look at how bad MBO compensation management can affect your company –

• Subjective evaluations can spread the perception of unfairness or favoritism.
• Reduced differentiation among salesforce could make better performers discontent and unmotivated.
• Increased administrative burden for field management.
• Instead of ‘managing the performance,’ it could lead to ‘managing the manager.’

Best Practices for Creating an Effective MBO Program

There are certain things that must be kept in mind to create an effective MBO Compensation program. Here’s how you can design a better MBO program –  

• Educating managers by set goals and objectives by referring to the SMART framework
• Proactively communicating the desired activities and linking them with the expected outcome
• Taking updates, guiding salespeople, and providing feedback whenever necessary
• Designing a measurement scale to differentiate performance according to different achievement levels
• Defining strong process governance and incorporating an all-round communication framework
• Identifying the right set of tools needed for summarizing and using MBO outcomes at the time of performance appraisal.

Get Your MBO Manager Today! 

At Aurochs, our specialized MBO Manager can help create, manage, rate, and approve MBO goal examples across your salesforce at various levels. With configurable objective setting, reporting, and rating features, you can streamline your workflow and align it with your organizational needs and guidelines.

With a conversational feature to discuss performance on objectives, our MBO Compensation platform enables employees to seek guidance from managers regarding their assigned goals. Similarly, managers can use the channel to offer ongoing feedback to improve employee performance scorecard.

Setting and managing MBOs couldn’t get any easier! If you’re interested in our MBO Management system, get in touch with us today!